Subscribe to Moneycontrol Pro and get 365 bonus InterMiles! Use Code: INTERMILES
Last Updated : Oct 29, 2019 03:22 PM IST | Source: Moneycontrol.com

Sept fund data: Individual holding in total AUM surpasses share of institutional investors

Individual assets have mainly come from the top 30 locations, and are primarily distributor- driven

Representative image
Representative image

In signs of growing investor maturity, data shows individual investors hold a higher share of mutual fund industry assets than institutional investors. Traditionally, institutional investors held a larger pie of the total assets under management (AUM) of the industry. The data also comes in the backdrop of the recent correction in midcaps and smallcaps and select rally in few largecap counters.

According to the data shared by the Association of Mutual Funds in India, the share of individual investors stood at 54.1 percent in September, compared with 53.3 percent in the same period last year. Individual investor assets considered here include investments by high networth investors (HNIs).

In comparison, the share of institutional investors fell to 45.9 percent, or Rs 11.75 lakh crore in September, from 46.7 percent, or Rs 11.35 lakh crore, a year ago. Institutions include domestic and foreign institutions and banks.

The average assets under management of the Indian MF industry stood at Rs 25.60 lakh crore as on September-end, up 5.3 percent YoY.

As per AMFI, investments by individual investors in equity schemes, including balanced funds, increased 5.65 percent YoY. Individual assets have mainly come from the top 30 locations, and are primarily distributor driven.

Sixty-one percent of the assets of individual investors are from top 30 cities, largely brought in by distributors. The latter in turn credit investor awareness programmes by AMFI and fund houses for higher investor participation.

Direct investments amount to 19 percent of individual assets, divided as three percent from B30 and 16 percent from T30.

Individual investors primarily hold equity-oriented schemes while institutions hold liquid and debt-oriented schemes. Sixty-eight percent of individual investor assets are held in equity oriented schemes, while 76 percent of institutions assets are held in liquid/money market schemes and debt-oriented schemes.

First Published on Oct 29, 2019 03:22 pm